Optimal Blue: June’s Mortgage Demand Strengthening

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Optimal Blue, Plano, Texas, reported that mortgage activity strengthened month-over-month in June.

Total rate-lock volume was up 10% month-over-month and 15% year-over-year.

Purchase lock volume was up 10% month-over-month and 14% year-over-year, to hit the highest level since early spring.

Cash-out refinance volume grew 11% month-over-month and 10% year-over-year. Rate-and-term refinance volume increased 6% month-over-month and 32% year-over-year.

Refinance share was near flat month-over-month at 19% of total lock volume, significantly above the levels in 2025.

“June wasn’t defined by a single headline number. Purchase demand strengthened, refinance activity held up and pull-through improved after softening in May,” said Mike Vough, senior vice president of corporate strategy at Optimal Blue. “Together, those trends point to a market that is battle tested and that has adapted to a higher-for-longer rate environment.” 

Conforming share fell to 49% of total production, and non-conforming was more than 19% of the volume. FHA was nearly 19% and VA was around 13%. Non-QM was 9% of total lock volume, up four percentage points year-over-year.

Planned unit developments increased to 28% of total volume. Single-family homes were 64% of production and condos were 6%.

First-time homebuyers were 45% of conforming purchase locks in June, up nearly 3 percentage points from a year ago. FHA first-time homebuyer share was 69%.

DTI ratios are below 2025 levels, with conforming borrowers at 36.6%, FHA at 43.5% and VA at 43%.

And, borrower credit held steady, averaging 731. Conforming borrowers averaged 753.

Purchase pull-through was 81.4%, and refinance pull-through was 71.1%.

The average locked loan amount was just over $399,000, near record highs. Average LTV ratios nationwide were 81.4%.